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Microsoft Teases Next-Gen Xbox Plans: 'Not Locked to a Single Store'

Expect the next-generation Xbox to not only work in the 'living room,' but to offer portable gaming by harnessing upcoming chips from AMD.

 & Michael Kan Principal Reporter

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Microsoft is teasing the next-generation Xbox by announcing a partnership with AMD to develop chips for multiple devices. 

On Tuesday, Microsoft published a video about the “strategic multi-year” partnership with AMD, the current chip supplier for the Xbox Series X console and last generation’s Xbox One. The two companies will "co-engineer silicon across a portfolio of devices, including our next-generation Xbox consoles, in your living room, and in your hands," says Xbox President Sarah Bond.

The “in your hands” is the latest clue that Microsoft is preparing a portable handheld Xbox, despite rumors that the company had temporarily shelved the project.

The other interesting wrinkle is that Bond says the company is committed to delivering an Xbox experience "not locked to a single store, or tied to one device." Might this open the Xbox to Steam?

The one-minute video doesn’t offer much else, except reiterate Microsoft’s ongoing effort to expand Xbox beyond consoles to all kinds of third-party devices with the help of cloud gaming. Still, Bond uses the clip to hype up the AMD partnership, saying it promises to unlock even better graphics and immersive gaming experiences. 

“The next generation Xbox is coming to life and this is just the beginning. We can’t wait to show you what’s next,” Bond adds, without elaborating or offering a date.  

Meanwhile, AMD's SVP for Computing and Graphics, Jack Huynh, tweeted: “This isn’t just a hardware evolution—it’s a bold, shared vision to push the boundaries of what’s possible in gaming.” This includes creating “an open, player-first ecosystem—not locked to a single device or store."

The bigger commitment to an open ecosystem might appeal to consumers. Still, Microsoft faces heated competition in the gaming space. Sony’s PlayStation 5 has been a huge hit and Nintendo’s newly released Switch 2 is bound to attract tens of million in sales. At the same time, Valve’s Steam Deck has been making waves by offering handheld PC gaming on a Linux-based operating system. 

In response, Microsoft recently partnered with Asus to create an Xbox-themed handheld with the upcoming ROG Xbox Ally and Ally X handhelds, which both use AMD chips. However, no pricing or launch date has been announced, although the handhelds are slated to arrive later this year.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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